In order to shield its assets from creditors, the cryptocurrency hedge firm 3AC filed for bankruptcy.
3AC fell behind on a loan from Voyager Digital last week.
The May Terra LUNA and UST crash had a significant effect on 3AC. Days after beginning its liquidation in the British Virgin Islands, Three Arrow Capital (3AC), a prominent crypto hedge fund, filed for Chapter 15 bankruptcy in the US. It did this to prevent creditors from collecting its assets there.
One of the well-known investors whose main capital has gone into liquidation is 3AC, situated in Singapore. One of the main casualties of the most recent “Crypto Winter” was this. On June 1, representatives of the corporation filed for bankruptcy in a court in the Southern District of New York (Manhattan). It legally protects US assets of insolvent foreign debtors from US creditors.
A British Virgin Islands court last week mandated the liquidation of 3AC’s capital. They were unable to pay back a $670 million loan from cryptocurrency broker Voyager Digital. As a result, all trades, transactions, deposits, and withdrawals have come to an end. To manage the procedure, 3AC is thinking of using the business consulting firm Teneo.
According to blockchain analytics company Nansen, the fund, which was co-founded by former Credit Suisse traders Zhu Su and Kyle Davis, managed over $10 billion in assets as recently as March before dropping to $3 billion in April. According to a report from last month, US-based cryptocurrency lenders Genesis and BlockFi have sold part of 3AC’s holdings after the company borrowed money from them. However, it still was unable to pay the lenders’ margin call.
Due to its exposure to the defunct algorithmic stablecoin Terra USD and its sister token LUNA, 3AC suffered a $200 million investment loss. However, co-founders Davies and Zhu said in a WSJ interview that they still are and have always been crypto believers in the future of technology.
Cryptocurrencies have evolved beyond Bitcoin, giving rise to a new wave of digital assets known as altcoins. These alternative coins…
Key Points Sweden's economy contracted by 0.1% in Q1 2024, defying the expected 0.2% growth. March saw a 0.4% drop…
Key Points Bitcoin recently reported at $62,528, with a historical peak near $73,000. Estimates range from $70,000 by March to…
Key Points: S&P 500 achieved its best weekly performance since November, rising 2.7% and reversing previous downturns. 80% of S&P…
Key Points EUR/USD is trading at 1.0710, boosted by a dip in the US Dollar Index below 106.00. Fed is…
Key Points Oil prices declined as Brent crude and WTI futures fell, erasing gains from the previous Friday. Israel-Hamas talks…
This website uses cookies.